5 Tips for Creating Accurate Construction Estimates

In Contract Bidding by kevinLeave a Comment

Bidding on a construction project can be challenging. However, if you fully consider all the factors of the job, you can put together a competitive bid that also covers your expenses and accounts for unexpected challenges along the way. The following are a few basic factors to consider when creating your estimate.

laptop and notebook on desk in front of whiteboard with notes

Know the Details

When creating your bid for a construction project, consider all components of the job. Determine the number of work hours each phase will take. Create a list of materials you’ll need and of any subcontractors needed to perform the labor.

Define the Risks

Think about anything that could possibly go wrong during construction, and factor in any potential complications into the cost and timeline of the project. Although you can’t predict the future, you can look at your previous projects to determine what unknowns affected your time and profit margins in the past to plan and prepare for your next bid.

Evaluate Needed Materials

Plan for fluctuations in material prices and any delivery challenges you may have due to products that are in high demand. Take note of materials that you may need more quickly than the manufacturer’s normal turnaround time, so project timelines can stay on schedule.

Plan for Seasonal Limitations

Consider any potential scheduling delays as weather and seasons fluctuate. Delays can have cost implications, as slowdowns are compounded as projects continue further into development. Are there products that you already know will have a long lead time? If so, plan accordingly.

Account for General Operations Costs

Whether you’re a business owner or general contractor, there are certain costs related to your project that fall outside of direct labor and material costs. Be sure to include these expenses in your estimate.

Lots of time and energy goes into bidding on a construction project. It’s important to stay organized with a bid management system, so you can grow your business in a fast and efficient manner. For more information about how you can be methodical and manage your construction bids quickly and easily, contact us today.

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